Potential logging residue from forest harvesting operation is significantly high at tree quantities of logging. This reflects in a low efficient of harvesting that may derive wasteful in using forest resources. In the contrary, the wood supply is not equal to wood demand. The wood supply continously decrease so that it is not able to support the demand of wood industry. The aim of research is to find out the potential logging residue on forest harvesting operation and its effect on wood utilization at two companies in Kalimantan. Research method used by measuring potential forest standingstock, potensial use of wood volume and logging residue from the harvesting operation. The study also measures felling index, skidding index and efficiency of wood utilization. Research result showed that: (1). Average of wood volume used in IUPHHK- HA PT Karya Lestari (PT A) and Inhutani II (PT B) are consecutively 16.759 m3/tree and 6.742 m3/tree; (2). Average of logging residue PT A and PT B are 2.410 m3/tree and 0.472 m3/tree; (3) The percentage of the logging residue at tha bottom stem, middle stem, and upper stem at PT A are 0%, 81.54%, 18.46% and PT B is about 70.25%, 21.78%, 7.97%; (4). The average of timber utilization efficiency (TUE) at PT A and PT B are 88% and 86%; and (5). The equation derived from the comparation model between the effect of logging residue from forest harvesting operation and efficiency of wood utilization is Y = 0.971 - 0.0341 X.